Transport Minister Anthony Loke (right) officiating the first Malaysian-made leased locomotive Asean Express, international freight train service connecting Malaysia, Thailand, Laos, and China at Kontena Nasional Inland Clearance Depot, Seri Setia.-Bernamapic
PETALING JAYA: Malaysia’s trade connectivity with the rest of South-East Asia and China has been improved with the launch of the Asean Express, an international freight train connecting Malaysia to Thailand, Laos and China.
The service will connect new trade routes and multiple inland ports across the region including the Kontena Nasional Inland Clearance Depot (KNICD) in Selangor, Perlis Inland Port in Perlis, Latkrabang Inland Port in Thailand, and Thanaleng Dry Port in Laos in as pivotal trade hubs.
The train is expected to reduce the transit time of goods within the region significantly, for example taking just nine days from KNICD to Chonqing against the 14 to 21 days normally required by sea.
Transport Minister Anthony Loke said the new service would not only improve regional logistics and rail connectivity but also open up new markets and provide more cost savings to local businesses and the people.
“This service will provide smoother and more efficient goods flow throughout the region as well as enhance rail cargo transport capacity while reducing logistics costs by an estimated 20% (from) current market rates," he said after the flagging off of Asean Express’s first shipment to Chongqing in China from KNICD here on Thursday (June 27).
“The shorter transport times are also expected to open up new markets, with the agricultural sector in particular to benefit by allowing perishable produce to be transported more quickly by rail.
“Rail transport also boasts a significantly lower carbon footprint than road haulage, promoting a sustainable future.
“Let us continue to work together in fostering innovation and strengthening trade ties, to build a sustainable and competitive regional rail transport network that will benefit businesses and citizens across South-East Asia,” the minister added.
The new service will also see the deployment of the first Malaysian-made “pay-per-use” leased locomotives by Keretapi Tanah Melayu Berhad (KTMB).
A total of six locomotives and 204 wagons, manufactured using local expertise at homegrown rail equipment manufacturer SMH Rail in Selangor, have been leased by KTMB for the service which projects two Asean Express round-trip runs per week for its initial run.
Each weekly run is expected to carry 40 twenty-foot equivalent unit (TEU) containers from KNICD, passing through Thailand and Laos to China, with plans to gradually increase frequency to daily runs, according to a KTMB press release.
KTMB Group chief executive officer Datuk Mohd Rani Hisham Samsudin expressed his pride in the new service for showcasing both Asean and Malaysia’s competitiveness in the global market.
“This project showcases our technical expertise and innovation and also strengthens our position as a key player in the railway industry.
“The Asean Express also has the potential to handle up to 20,000 TEUs annually from China to the Asean market, which opens up significant opportunities for trade and economic growth while reinforcing the strategic importance of our railway network in the regional supply chain.
“Through this connection of key economic hubs, we expect the service to facilitate greater economic integration among our neighbours while also driving regional development and prosperity,” he said in his speech at the event.
Also in attendance were Lao People’s Democratic Republic deputy head of mission to Malaysia Phetwilaychanh Souvannarath, Thailand Ambassador to Malaysia Lada Phumas, and China Ambassador to Malaysia Ouyang Yujing.
